A recent survey conducted by Frappe Digital highlights significant levels of corruption in Romanian private companies, with employees reporting issues such as nepotism, abuse of power, and illegal practices. Here are the key findings from the survey:
Types of Corruption Reported
Favoritism and Nepotism:
Employees frequently observe favoritism and nepotism within their companies. This is more prevalent in larger firms, where hierarchical structures may facilitate such practices.
Abuse of Power:
Abuse of power by management is another common issue reported by employees. This includes unfair treatment and decision-making that benefits a select few.
Illegal Practices:
Workers have also witnessed or are aware of illegal activities such as under-the-table work (muncă la negru), unregistered cash transactions, and bribery to secure clients.
Distribution of Corruption by Company Size
Large Firms:: Larger companies tend to have higher incidences of favoritism, nepotism, and abuse of power.
Small Firms:: Smaller companies are more prone to fiscal evasion and bribery incidents.
Employee Insights
The survey asked respondents to share their firsthand experiences or reliable information about corruption in their current or previous workplaces over the past five years.
Daniel Enescu, founder of Daedalus (now part of Kantar Millward Brown), noted that except for top managers and owners, most employees had no reason to withhold information about corrupt practices.
Comparison with Public Perception
Despite the issues in private companies, a parallel study suggests that private firms are perceived as less corrupt than state-owned companies and government institutions.
Corruption Perception Hierarchy:
Government and Parliament: Viewed as the most corrupt.
Municipalities: Also perceived as highly corrupt.
Judicial System: Seen as having significant corruption issues.
Healthcare System: Considered more corrupt than the police.
Church: Perceived as more corrupt than the education system.
Education System: Seen as more corrupt than the military.
Firefighters: The only institution perceived as largely uncorrupted.
Observations and Recommendations
Transparency and Integrity:
Companies need to adopt clear and transparent policies to prevent favoritism and nepotism. Hiring and promotion processes should be merit-based.
Internal Audits:
Implementing rigorous internal audits can help detect and prevent illegal practices.
Education and Awareness:
Organizing training sessions on ethics and compliance can help create an organizational culture based on integrity.
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